lindab | we simplify construction Lindab Group SEB Nordic Seminar 2017 January 2017 Anders Berg, President and CEO
lindab | we simplify construction
Lindab GroupSEB Nordic Seminar 2017
January 2017Anders Berg, President and CEO
lindab | we simplify construction
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• Business update
• Strategy in action
• Going digital
• Outlook
Agenda
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Business
update
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5-8%
The targets stretch over a business cycle
(1) Excluding one-off items
(2) All numbers are L12M September 2016
The dividend target is 30% of
the company’s profit after tax
10% <2.5Annual Growth Operating Margin Net debt/EBITDA
30%
The long term financial targetsCreating value for our shareholders
Growth L12M at
6% in line with
target (2)
EBIT margin (1)
of 6.7% L12M
below target (2)
Net
debt/EBITDA (1)
at 2.5 in line
with target (2)
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Residential and commercial exposure in Ventilation
and Building Products
Pan-european business
New-build and retrofit business
Distribution and project related
Customized pre-engineered steel buildings
Large exposure to Russia and CIS
New-build business
Project related business – Key Account and
Builder Dealers focus
Same company but different storiesClearly different development and challenges
400
500
600
5.000
7.000
6.000
201620152014
1.000
750
200
0
1.250
50
-50
150
201620152014
Products and Solutions Building Systems
Remark: Sales in MSEK (left axis bars) and EBIT in MSEK (right axis line) excluding one-off items. All
numbers are L12M September 2016.
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Strategy in
action
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Strategy in action driving Lindab forwardThe bigger picture – Products and Solutions
250
300
350
400
450
500
550
5.500
6.500
5.000
6.000
7.000
20112010 2012
Sales MSEK
2015 201620142013
EBIT MSEK
Sales (MSEK) EBIT (MSEK)
• The future strategic
path for Lindab was
developed during
2014
• 5 clear focus areas
being launched
• Sales increased with
25% since 2013
• EBIT increased with
50% since 2013
Remark: Sales in MSEK for segment Products and Solutions (left axis bars) and EBIT in MSEK (right axis line)
excluding one-off items. All numbers are L12M September 2016.
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Ivan
the
Installer
Charlie the
Contractor
Ted
the
Technical
consultant
Archie
the
Architect
Dave
the
Distributor
Peter
the
Property
owner
Eric &
Erica
the End-
users
Expanding the value propositionDriven by market excellence
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Market
ExcellenceEfficient
AvailabilityInnovation PeopleSolutions
Clear accountability
per country
Closing down smaller
sales entities and
unprofitable branches
Introduction of
Strategic Product
Management
Branch development
Transformation continues - examplesExamples of strategy execution so far and where “digitalization” kicks-in
ERP and IT
strategy
Closing four
factories
Establishment of
DC
Purchasing
organization
Acquisition of
Nather, Mp3 and
IMP Klima
Fan product
range
Leverage R&D
product
development -
Ecosystem
Ultra Link
development
project
Process to
generate ideas
Connectiviy and
digitalization
Lindab Academy
and Competence
Centers
Competence and
capabilities
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Innovation as part of our transformationThe bigger picture – simplifying construction no longer only about hardware
From spiral ducts To simplifying construction Adding technology Creating the Ecosystem
1960´s
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M&A going forwardFocus on integration during 2016 and improving balance sheet
M&A activity likely to
increase
Reviewing our market
footprint
Improved balance
sheet supports further
transactions
Fragmented market
with a number of
targets with sales of
20-40 MEUR within
Europe
Consolidation in the
market a visible trend
Bolt-on and
transformational deals
are both interesting
Constantly evaluating
our market positions
Focus will be on:
[1] Market presence
[2] IP and technology
[3] Strengthening product
program and / or route to
market
But, dare to say “no”
and patience to wait
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Going digital
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With our strategy we have started our
transformation of being connected
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The market for smart buildings is growing with
high speed as the demands for lowering the
energy usage in building increases
To be able to optimize energy efficiency
Focus on the system – not the parts
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Digital trendsCovered in our strategy
Building information
systems
Collaborate and
Integrate
Internet of Things and
Big data
Digital organisation
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Visualize Design Transact Construct PerformSelect Analyze
LindQST
Structural
DesignerLindQST
CADvent
BIM
AirCalc
EDI &
webshop Digital
manuals
Intelligent
solutions
Lindab
Connect
Our digital value chain – major focusThe bigger picture – simplifying construction no longer only about hardware
Structural designer
LindQSTLindQST
BIM
CADVent Online sales
Apps and online
UltraLink
AHU
VAV
Connect, measure and optimize
More than 1000
sessionsMore than 5000
projects in 2016
More than 100 000
products,
downloaded from
more than 70
countries
As example, close to
30% of all business
in DK made onlineMore than 4000
users
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The big picture – value selling
According to the EU's climate goals,
energy consumption
must be reduced by 20% by 2020
As energy consumption is still far too high, new
technologies and better solutions are required to
achieve this target – and to measure the air flows
This requirement is met using UltraLink.
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Vision - our future EcosystemUltra Link on the move
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Lindab
Academy train
and educate to
develop next
generation of
digital native
leaders and
employees
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Outlook
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Recipe for profitable growth and target fulfillment
Complexity Simplicity
1. Solid strategy based on a strong foundation – initial transformation completed
2. Well positioned to capture benefits from the energy efficiency and productivity
3. Established business in a significant part of European markets – develop strongholds
4. Commitment to innovation and product development
5. Proven track record in production excellence
Five ingredients for growth recipe
Challenges• Building Systems turnaround - continued challenging market climate in Russia and CIS
• Rapidly increasing steel prices - demand versus supply
• Agile planning for 2017 - uncertain political landscape in Europe impacting investments
• Speed in transformation - strong focus on ventilation and energy efficiency